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Help with starting a farm partnership. Please and thank you.
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steelguitar
Posted 7/22/2014 14:48 (#3980573 - in reply to #3980548)
Subject: RE: Help with starting a farm partnership. Please and thank you.


Dougherty, IA
Partnership with who? Mom and dad?

Not a big fan of partnerships. You need to find your own ground to rent, or your dad needs to let you rent some of what he is running if he is able. Keep everything separate. You use his equipment on your land, and you work for him in return. Use custom rates and an hourly labor rate to settle up at the end of the year. Hopefully you work enough for him that your labor offsets all the equipment and your dad actually owes you some money.

I have seen too many people go home to the farm and become "partners" with dad. What ends up happening is dad runs the show til he is dead and you end up a 60 year old farmhand with no management experience.

Also, keep an off farm job as long as you can. I know you don't want to, but you need capital and lots of it to make this thing go and be successful. I am not talking $10,000 either...I am talking 6 figures saved up in the bank. Money makes the farming world go around, not jacked up trucks and tractors that go down in value. Save/invest every dime you can. Live off your wife's income, save your off-farm income for a farm down payment, hog building, herd of cows, etc, keep re-investing your farm income into your operation.

Farming is competitive. You are competing against the 60 year old neighbor down the road with 600 acres paid off. You are at a major disadvantage so you have to outwork, outsave, outmarket, outhustle him every day if you want to buy the farm between you two.

I am in your shoes, too. So I don't know it all, but this is what I have learned in my short time on this earth.

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